IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Customer Demand for Service Reliability in the Electric Power Industry: A Synthesis of the Outage Cost Literature

Listed author(s):
  • Herriges, Joseph A.
  • Caves, Douglas W.
  • Windle, R. J.

The purpose of this paper is to review and synthesize recent North American research into the demand for service reliability and to draw conclusions of general interest to the utility industry. The electric power industry has, over the past 15 years, experienced increasing pressures to become more efficient, that is to provide greater value to its customers for the same resource utilization. The industry's response to these pressures has given rise to the potential for major changes in the theory and practice of utility planning, operations and pricing. A common thread running through many of these changes is a recognition that the consumer's demand for service reliability plays a key role in designing prices and services. To date the demand for service reliability has been characterized almost exclusively in terms of `outage costs', which refer to loss in value to the customer resulting from a sudden interruption of power. In the case of industrial and commercial customers, these costs may take the form of lost sales, idle labor, or product and input spoilage. While residential outage costs may also include spoilage, the less tangible costs of inconvenience are likely to play a more dominant role.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers Archive with number 10790.

in new window

Date of creation: 01 Jan 1990
Publication status: Published in Bulletin of Economic Research 1990, vol. 42 no. 2, pp. 79-119
Handle: RePEc:isu:genres:10790
Contact details of provider: Postal:
Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070

Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:isu:genres:10790. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Curtis Balmer)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.